Q2 2026 Edible Garden AG Inc Earnings Call

August 14, 2026

Speaker #1: Good morning, everyone, and welcome to Edible Garden Incorporated's 2026 second quarter business update conference. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation.

Operator: Good morning, everyone, and welcome to Edible Garden Incorporated 2026 second quarter business update conference. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the call over to your host, Ted Ayvas, Investor Relations at Crescendo Communications. Ted, the floor is yours.

Speaker #1: If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the call over to your host, Ted Ayvas, Investor Relations at Crescendo Communications.

Speaker #1: Ted, the floor is yours.

Speaker #2: Thanks, Jenny. Good morning, and thank you for joining Edible Garden's Q2 2026 earnings conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Kostas Dafoulas, Interim Chief Financial Officer of Edible Garden.

Ted Ayvas: Thanks, Jenny. Good morning, and thank you for joining Edible Garden's 2026 second quarter earnings conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden, and Costas Dafoulis, Interim Chief Financial Officer of Edible Garden. Earlier today, the company announced its operating results for the three and six months ended 30 June 2026. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov. If you have any questions after the call or would like any additional information about the company, please contact Crescendo Communications at 212-671-1020.

Speaker #2: Earlier today, the company announced its operating results for the three and six months ended June 30, 2026. The press release is posted on the company's website, www.ediblegardenag.com.

Speaker #2: In addition, the company has filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission, which can also be accessed on the company's website as well as the SEC's website at www.sec.gov.

Speaker #2: If you have any questions after the call, or would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020. Before Mr. Kras reviews the company's operating results for the quarter ended June 30, 2026, and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements.

Ted Ayvas: Before Mr. Kras reviews the company's operating results for the quarter ended 30 June 2026 and provides a business update, we would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. The words aim, anticipate, believe, could, expect, may, plan, project, strategy, will, and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

Speaker #2: All statements, other than statements of historical fact, contained in this conference call—including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations—are forward-looking statements.

Speaker #2: The words "aim," "anticipate," "believe," "could," "expect," "may," "plan," "project," "strategy," "will," and the negatives of such terms and other words and terms of similar expressions are intended to identify forward-looking statements.

Speaker #2: These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs.

Speaker #2: These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2025.

Ted Ayvas: These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended 31 December 2025. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements except as required by law.

Speaker #2: Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Speaker #2: You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance, or achievement.

Speaker #2: In addition, neither the company nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements, except as required by law.

Speaker #2: All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements, as well as others made on this conference call.

Ted Ayvas: All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. With that, I would now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden. Jim?

Speaker #2: You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. With that, I would now like to turn the call over to Mr. Jim Kras, Chief Executive Officer of Edible Garden.

Speaker #2: Jim?

Speaker #3: Thanks, Ted, and good morning, everyone. The second quarter was another period of solid progress for Edible Garden. Revenue grew 12.8% year over year to $3.6 million, while total sales increased by more than 31%.

Jim Kras: Thanks, Ted, and good morning, everyone. Q2 was another period of solid progress for Edible Garden. Revenue grew 12.8% year over year to $3.6 million, while total sales increased by more than 31%. What was particularly encouraging was the breadth of that growth. Cut herb sales increased more than 42%, driven by continued growth with existing customers and newer programs with major retailers, including Kroger, Target, and Weis. We saw growth across potted herbs, International Vitamins, and condiments as well, while expanding our relationships with retailers including Target, Walmart, Safeway, ShopRite, and The Fresh Market. In addition, we extended a multi-year private label contract with a major Midwest retailer. More recently, we were awarded fresh cut herb distribution through a key Target Midwest distribution center, further expanding that relationship and broadening distribution of our premium fresh cut herb portfolio across the region.

Speaker #3: It was particularly encouraging to see the breadth of that growth. Cut herb sales increased more than 42%, driven by continued growth with existing customers and newer programs with major retailers, including Kroger, Target, and Weis.

Speaker #3: We saw growth across potted herbs, international vitamins, and condiments as well, while expanding our relationships with retailers, including Target, Walmart, Wakefern, ShopRite, and The Fresh Market.

Speaker #3: In addition, we extended a multi-year private label contract with a major Midwest retailer. More recently, we were awarded fresh cut herb distribution through a key Target Midwest distribution center.

Speaker #3: Further expanding that relationship and broadening distribution of our premium fresh-cut herb portfolio across the region. We believe the reward demonstrates our ability to leverage our Midwest production and distribution infrastructure to efficiently support additional volume as our retail programs expand.

Jim Kras: We believe the award demonstrates our ability to leverage our Midwest production and distribution infrastructure to efficiently support additional volume as our retail programs expand. Overall, we see a core business that continues to gain traction across customers, products, and channels. Improving the underlying economics of the business remains an important priority. In Metro New York, for example, we are transitioning more volume from direct store deliveries to retail distribution centers and regional logistics hubs. We believe this can reduce transportation and delivery-related costs, simplify the network, and create better operating leverage as we grow. At the same time, the retail relationships, distribution capabilities, and infrastructure we have built through our core business gives us a foundation that can be leveraged well beyond traditional produce.

Speaker #3: Overall, we see a core business that continues to gain traction across customers, products, and channels. Improving the underlying economics of the business remains an important priority.

Speaker #3: In Metro North, for example—in Metro New York, for example—we are traditionally moving more volume from direct store deliveries to retail distribution centers and regional logistics hubs.

Speaker #3: We believe this can reduce transportation and delivery-related costs, simplify the network, and create better operating leverage as we grow. At the same time, the retail relationships, distribution capabilities, and infrastructure we have built through our core business give us a foundation that can be leveraged well beyond traditional produce.

Speaker #3: And that brings me to what we believe is the most significant long-term growth opportunity in front of Edible Garden: our farm-to-formula strategy, and the development of the ready-to-drink (RTD) manufacturing platform at Prairie Hills in Webster City, Iowa.

Jim Kras: That brings me to what we believe is the most significant long-term growth opportunity in front of Edible Garden, our Farm-to-Formula strategy and the development of the ready-to-drink RTD manufacturing platform at Prairie Hills in Webster City, Iowa. We believe this has the potential to fundamentally change the scale and profile of our business over time, and we made significant progress during Q2. Most notably, we successfully completed prototype production at Tetra Pak's new product development center. This was much more than a product development exercise. It allowed us to run our proprietary clean label formulations under commercial processing conditions, generate production data, further optimize the products, and advance our preparation for customer sales and commercial manufacturing. In parallel, we continued moving forward with the physical development of Prairie Hills with Structura Architects and E2 Building Group supporting the design, engineering, and construction process.

Speaker #3: We believe this has the potential to fundamentally change the scale and profile of our business over time, and we made significant progress during the second quarter.

Speaker #3: Most notably, we successfully completed prototype production at Tetra Pak's new product development center. This was much more than a product development exercise; it allowed us to run our proprietary clean-label formulations under commercial processing conditions, generate production data, further optimize the products, and advance our preparation for customer sales and commercial manufacturing.

Speaker #3: In parallel, we continued moving forward with the physical development of Prairie Hills, working with Structura Architects and E2 Building Group to support the design, engineering, and construction process.

Speaker #3: Together, these milestones represent meaningful progress towards the scalable commercial manufacturing platform we envisioned. The reason why we are so focused on this opportunity is the potential scale.

Jim Kras: Together, these milestones represent meaningful progress towards the scalable commercial manufacturing platform we envisioned. The reason why we are so focused on this opportunity is the potential scale. Prairie Hills is being developed as a flexible, high-capacity platform for shelf-stable, clean label nutritional beverages utilizing advanced Tetra Pak processing and packaging technologies. At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually, providing the potential to participate across sports nutrition, protein beverages, functional wellness, meal replacement, GLP-1 support, and other better-for-you categories. Importantly, the platform is being developed to drive our own brands as well as private label and co-manufacturing opportunities, giving us multiple potential paths to build volume and create value from the facility. What makes this opportunity particularly compelling is that we are not starting from scratch.

Speaker #3: Prairie Hills is being developed as a flexible, high-capacity platform for shelf-stable, clean-label nutritional beverages, utilizing advanced Tetra Pak processing and packaging technologies. At full production, we expect the facility to have capacity to manufacture more than 100 million beverage units annually, providing the potential to participate across sports nutrition, protein beverages, functional wellness, meal replacement, GLP-1 support, and other better-for-you categories.

Speaker #3: Importantly, the platform is being developed to drive our own brands, as well as private label and co-manufacturing opportunities, giving us multiple potential paths to build volume and create value from the facility.

Speaker #3: What makes this opportunity particularly compelling is that we are not starting from scratch. Our products are already available in more than 6,000 retail locations and growing.

Jim Kras: Our products are already available in more than 6,000 retail locations and growing. We've spent years developing relationships with national and regional retailers, along with the food safety, supply chain, and commercialization, and retail execution capabilities needed to serve them. Combining that existing commercial infrastructure with scalable domestic RTD manufacturing has the potential to significantly expand our addressable market, diversify our revenue base, and over time, improve the earning profiles of the business. That is really what Farm-to-Formula is about. We started with controlled environment agriculture and fresh produce, expanded into higher value branded nutrition and functional foods, and now Prairie Hills gives us the opportunity to take another significant step into shelf-stable, clean label nutrition. We view Prairie Hills as much more than a new manufacturing facility.

Speaker #3: We've spent years developing relationships, not only with national and regional retailers, but also with food safety, supply chain, commercialization, and retail execution capabilities needed to serve them.

Speaker #3: Combining that existing commercial infrastructure with scalable domestic RTD manufacturing has the potential to significantly expand our addressable market, diversify our revenue base, and, over time, improve the earnings profile of the business.

Speaker #3: That is really what farm-to-formula is about. We started with controlled environment agriculture and fresh produce, expanded into higher-value branded nutrition and functional foods, and now Prairie Hills gives us the opportunity to take another significant step into shelf-stable, clean-label nutrition.

Speaker #3: We view Prairie Hills as much more than a new manufacturing facility. We believe it has the potential to become an important growth engine for Edible Garden and a key part of our evolution into a broader clean-label food and nutrition platform.

Jim Kras: We believe it has the potential to become an important growth engine for Edible Garden and a key part of our evolution into a broader clean label food and nutrition platform. Our focus remains on execution, growing the core business, improving operating efficiency, and advancing Prairie Hills towards commercial production, and developing the branded and private label opportunities that can ultimately utilize that capacity. We believe the pieces are increasingly coming together, and we're excited about the direction of the business and the opportunity ahead. With that, I'll turn the call over to Costas to review the financials. Costas?

Speaker #3: Our focus remains on execution, growing the core business, improving operating efficiency, advancing Prairie Hills towards commercial production, and developing the branded and private label opportunities that can ultimately utilize that capacity.

Speaker #3: We believe the pieces are increasingly coming together, and we're excited about the direction of the business and the opportunities ahead. With that, I'll turn the call over to Kostas to review the financials.

Speaker #3: Kostas?

Speaker #2: Thanks, Jim. And good afternoon—or good morning, everyone. Revenue for the three months ended June 30, 2026, increased 12.8% to approximately $3.6 million, compared to approximately $3.1 million in the prior-year period.

Costas Dafoulis: Thanks, Jim, and good morning, everyone. Revenue for the three months ended 30 June 2026 increased 12.8% to approximately $3.6 million, compared with approximately $3.1 million in the prior year period. The increase was driven by continued growth in our cut herb and potted portfolio, which increased approximately half a million dollars or 50% year over year. Revenue growth was supported by underlying volume gains concentrated in select categories, with total gross sales increasing 7.6% year over year. While cut herbs and condiments drove the growth, our financial focus is on converting that higher volume and revenue into improved operating performance as we continue to scale the business. Gross profit for the quarter was approximately $0.6 million, essentially flat with the prior year period. While we continue to generate top-line growth, cost of goods sold remained elevated, and improving profitability of that growth remains an important focus for us.

Speaker #2: The increase was driven by continued growth in our herb and powdered portfolio, which increased approximately $500,000, or 50%, year over year.

Speaker #2: Revenue growth was supported by underlying volume gains, concentrated in select categories, with total gross sales increasing 7.6% year over year. While cut herbs and condiments drove the growth, our financial focus is on converting that higher volume and revenue into improved operating performance as we continue to scale the business.

Speaker #2: Gross profit for the quarter was approximately $0.6 million, essentially flat with the prior year period. While we continue to generate top-line growth, cost of goods sold remained elevated, and improving profitability of that growth remains an important focus for us.

Speaker #2: One of the more meaningful improvements during the quarter was in selling, general, and administrative expenses. SG&A declined approximately $0.9 million, or 21.5%, to $3.1 million, compared with approximately $4.0 million in the second quarter of last year.

Costas Dafoulis: One of the more meaningful improvements during the quarter was in selling, general, and administrative expenses. SG&A declined approximately $0.9 million, or 21.5%, to $3.1 million, compared with approximately $4 million in Q2 of last year. We believe this reflects a continued focus across the organization on managing expenses and improving operating efficiency as we scale the business. Net loss improved year over year to approximately $3.3 million from approximately $4 million in Q2 of 2025. Turning to the balance sheet and cash flow, total debt increased approximately $14.2 million from approximately $1.9 million at year-end, reflecting $13.5 million of new financing this quarter related to our initial investment in the Prairie Hills manufacturing facility in Iowa.

Speaker #2: We believe this reflects a continued focus across the organization on managing expenses and improving operating efficiency as we scale the business. Net loss improved year over year to approximately $3.3 million from approximately $4 million in the second quarter of 2025.

Speaker #2: Returning to the balance sheet and cash flow, total debt increased approximately $14.2 million from approximately $1.9 million at year-end, reflecting $13.5 million of new financing this quarter related to our initial investment in the Prairie Hills manufacturing facility in Iowa.

Speaker #2: Cash and restricted cash together were approximately $10.7 million at June 30, 2026, though approximately $10 million of that was held in a restricted account for the Iowa facility, leaving approximately $0.7 million of cash available for operations, compared with approximately $1.1 million of unrestricted cash at year-end.

Costas Dafoulis: Cash and restricted cash together were approximately $10.7 million at 30 June 2026, though approximately $10 million of that was held in a restricted account for the Iowa facility, leaving approximately $0.7 million of cash available for operations, compared with approximately $1.1 million of unrestricted cash at year-end. Total assets were approximately $27.7 million, compared with approximately $20.6 million at 31 December 2025, and total liabilities were approximately $22.1 million. We continue to focus on strengthening our capital position as we fund the business and invest in Prairie Hills. Operating cash flow was positive for the second consecutive quarter, with net cash provided by operating activities of approximately $0.9 million for the six months ended 30 June 2026, compared with cash used in operations of approximately $6.8 million in the prior year period. As we look ahead, our financial priorities remain closely aligned with the operating strategy Jim discussed.

Speaker #2: Total assets were approximately $20.3 million, compared with approximately $20.6 million at December 31, 2025, and total liabilities were approximately $22.1 million. We continue to focus on strengthening our capital position as we fund the business and invest in Prairie Hills.

Speaker #2: Operating cash flow was positive for the second consecutive quarter, with net cash provided by operating activities of approximately $0.9 million for the six months ended June 30, 2026, compared with cash used in operations of approximately $6.8 million in the prior-year period.

Speaker #2: As we look ahead, our financial priorities remain closely aligned with the operating strategy Jim discussed. We are focused on continuing to grow revenue through our expanding retail network, improving the cost structure of the core business, maintaining discipline around SG&A, and allocating resources toward the opportunities we believe can generate the greatest long-term returns.

Costas Dafoulis: We are focused on continuing to grow revenue through our expanding retail network, improving the cost structure of the core business containing discipline around SG&A and allocating resources toward the opportunities we believe can generate the greatest long-term returns. At the same time, we are continuing to invest in the development of Prairie Hills and the RTD platform. As we make those investments, we intend to remain disciplined in how we deploy capital and balance the requirements of the existing business with the opportunity we see in building a scalable domestic clean label beverage manufacturing platform. We believe the combination of continued revenue growth, a more efficient operating structure, and disciplined investment in higher value growth opportunities provides a path towards improving the financial profile of Edible Garden over time. With that, I'll turn the call back to the operator for questions.

Speaker #2: At the same time, we are continuing to invest in the development of Prairie Hills and the RTD platform. As we make those investments, we intend to remain disciplined in how we deploy capital and balance the requirements of the existing business with the opportunity we see in building a scalable domestic clean-label beverage manufacturing platform.

Speaker #2: We believe the combination of continued revenue growth, a more efficient operating structure, and disciplined investment in higher-value growth opportunities provides a path toward improving the financial profile of Edible Garden over time.

Speaker #2: With that, I'll turn the call back to the operator for questions.

Speaker #1: Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press star one on your phone keypad now.

Operator: Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press star one on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue. For any participants using speaker equipment, it may be necessary to pick up your handset before you press the keys. Please wait a moment whilst we poll for questions. Thank you. Our first question is coming from Nicholas Sherwood of Maxim Group. Nick, your line is live.

Speaker #1: A confirmation tone will indicate that your line is in the queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #1: For any participants using speaker equipment, it may be necessary to pick up your handset before you press the keys. Please wait a moment while we poll for questions.

Speaker #1: Thank you. Our first question is coming from Nick Sherwood of Maxim Group. Nick, your line is live.

Speaker #3: Hi, good morning. Thank you for taking my questions. My first question is about the new expansion and the newly targeted expanded distribution.

Nicholas Sherwood: Hi. Good morning. Thank you for taking my questions. My first question is about the new expansion and the new Target expanded distribution. Can you kind of contextualize what that distribution was before and how big of a win or a gain this new distribution is?

Nick Sherwood: Hi. Good morning. Thank you for taking my questions. My first question is about the new expansion and the new Target expanded distribution. Can you kind of contextualize what that distribution was before and how big of a win or a gain this new distribution is?

Speaker #3: Can you kind of contextualize, you know, what that distribution was before and, you know, how how big of a a win or a gain this new distribution is?

Speaker #4: Good morning, Nick. Yes, it's it's significant. You know, we've had a longstanding relationship with Target. And we've made quite a bit of investment in the, you know, just in the relationship and being able to be positioned for this type of opportunity.

Jim Kras: Good morning, Nick. Yes, it is significant. We have had a long-standing relationship with Target, and we have made quite a bit of investment just in the relationship and being able to be positioned for this type of opportunity. There has been market conditions and obviously, some peril for suppliers, not us. We are very fortunate. We are in a controlled environment agriculture, which means we control how we grow, and we have incredible food safety processes in place. With that said, this is their largest, if not one of their largest, pretty close. They just opened up a new fresh distribution center since they have been growing this part of their business, Target. This has been the long-standing largest. We had picked up some business earlier in the year, this year, and then this based on performance and market conditions.

Speaker #4: And, you know, there's been market conditions and, you know, obviously some perus for suppliers, not us. We're very fortunate, you know, we're in controlled environment agriculture, which means we control you know, how we grow and we have, you know, incredible safety you know, food safety processes in place.

Speaker #4: With that said, you know, this is this is their one of their their largest if not one of their largest pretty close. They just opened up a new fresh distributed distribution center to since they've been growing that this part of their business target.

Speaker #4: So but this has been a longstanding largest. And so we had picked up some business earlier that earlier in in the year this year and then this based on performance and market conditions there's just you know a lot of consolidation in in CEA right now with major some of our major competitors basically going out of business.

Jim Kras: There is just a lot of consolidation in CEA right now, with some of our major competitors basically going out of business. We are a trusted supplier with best-in-class fill rates and on-time rates. With the changes, the concerns, some of the instability in the business, Target reached out and wanted us to be able to pick this up for them because they wanted to know that they would hopefully have a partner where they would not have anything to worry about. For us, it is very significant since it is in Iowa. It helps align with the facilities out there, as well as the fact that they are based in Minnesota, which is not that far from Iowa. Thus, like I said, this is really kind of central to their business. We are very fortunate and happy to have gotten this opportunity.

Speaker #4: We're a trusted supplier with you know with with with you know best-in-class fill rates and on-time rates. And so you know with the changes the concerns some of the instability in the business you know Target reached out and you know wanted us to be able to pick this up for them because they they wanted to know that they would hopefully have you know a partner where they wouldn't have any anything to worry about and so for us it's it's it's very significant since it's in Iowa you know it helps align with our our our you know our the facilities out there as well as the fact that you know they're based in Minnesota which isn't that far from Iowa and thus like I said this is really kind of central to their to their business and and we're we're very you know fortunate and happy to have gotten this opportunity and like I said there's quite a bit of consolidation we have put out you know a press release I think it was maybe even a week or two ago that just talked about the fact that you know my phone's been ringing off the hook with people trying to you know align with Edible Garden since my team does such a great job of execution and it's always been the key for us.

Jim Kras: And like I said, there is quite a bit of consolidation. We put out a press release, I think it was maybe even a week or 2 ago, that just talked about the fact that my phone is been ringing off the hook with people trying to align with Edible Garden since my teams do such a great job of execution and it is always been the key for us. So yeah, it is pretty significant. But any other specifics on that, Nick, that I can answer? I hope that helps.

Speaker #4: So, yeah, it's pretty significant. But any other specifics on that, Nick, that I can answer? I hope that helps.

Speaker #3: No. Yeah, I think that's you know a perfect explanation for what I was thinking about. And kind of one thing that you know you mentioned in that answer was some of this consolidation that's kind of going on in the industry.

Nicholas Sherwood: No, yeah. I think that is a perfect explanation for what I was thinking about. And kind of one thing that you mentioned in that answer was some of this consolidation that is kind of going on in the industry. Can you give us a little bit of an insight on maybe how that may have accelerated in the past year and kind of what it is looking like through the end of the year and kind of the opportunity that might still remain available to Edible Garden in addition to this Target distribution expansion?

Nick Sherwood: No, yeah. I think that is a perfect explanation for what I was thinking about. And kind of one thing that you mentioned in that answer was some of this consolidation that is kind of going on in the industry. Can you give us a little bit of an insight on maybe how that may have accelerated in the past year and kind of what it is looking like through the end of the year and kind of the opportunity that might still remain available to Edible Garden in addition to this Target distribution expansion?

Speaker #3: Can you kind of give us a little bit of an insight on you know maybe how that may have accelerated in the past year and you know kind of what it's looking like through the end of the year and kind of the opportunity that might still remain available to Edible Garden in addition to this Target distribution expansion?

Speaker #4: Well, yeah, there's been there's been there's been quite a bit of consolidation and I think it's really driven by where people put their put their you know investment dollars and the fact that Edible Garden had you know had put put a an investment in their distribution platform and the relationships.

Jim Kras: Well, yeah. There has been quite a bit of consolidation, and I think it is really driven by where people put their investment dollars and the fact that Edible Garden had put an investment in their distribution platform and the relationships. And so, there is going to be issues in these types of business, whether it is supply chain issues or whatnot. There is always just issues. And I think what has happened is that our competitors put a lot of money into technology, a lot of money in trying to talk more about yield per square foot than really going out, securing the relationships, in peril, making investments like we have in the customer experience. Yes, we have technology with GreenThumb, and it is patented, and it helps with our supply chain efficiency, all those great things. When we bought the greenhouse in Michigan, we did a retrofit versus doing a greenfield project.

Speaker #4: And so, you know, there's going to be issues in these types of businesses, where there's supply chain issues or whatnot.

Speaker #4: You know there's always just issues and I think what's happened is that you know our competitors put a lot of money into technology a lot of a lot of money in trying to talk more about yield per square foot than really going out securing the relationships in parallel making investments like we have in you know the customer the customer experience yes we have technology with green thumb it's patented and it helps with our supply chain efficiency all those great things we when we bought the the greenhouse in Michigan we did a retrofit versus doing a greenfield project just things like that that's kept the business and and you can see it in our numbers this quarter just tighter and tighter and tighter as we've you know we've we've continued to drive you know the the business the delivery part of the business as I like to say you know the on-time and in full you know in stock rates and so all of that is really just led to us being positioned for to really pick up you know pick up the the ball when it's been dropped by our competitors and you know I think this sort of build it and they will come attitude in this category specifically has not worked out well because you really it's really ultimately about people buying your products and making sure that that that that that loop gets completed.

Costas Dafoulis: Just things like that that is kept the business

Jim Kras: You can see it in our numbers this quarter, just tighter and tighter and tighter as we have continued to drive the business, the delivery part of the business, as I like to say, the on time and in full, in stock rates. All of that has really just led to us being positioned to really pick up the ball when it has been dropped by our competitors. I think this sort of build it and they will come attitude in this category, specifically, has not worked out well because it is really ultimately about people buying your products and making sure that loop gets completed. I think that is just somewhere where we have really done a nice job.

Speaker #4: And I think that's just somewhere where we've really done a nice job. You know, I think Kostas has brought a discipline to the business that's allowed us to really focus on cleaning up SG&A and doing some things just to be more and more efficient.

Jim Kras: I think Costas has brought a discipline to the business that has allowed us to really focus on cleaning up SG&A and doing some things just to be more and more efficient. We are still in serious growth mode. Obviously with the Iowa facility, that is going to really take the company to the next level. Excited about that. I think, most importantly here, I think we have earned our stripes to be where we are and people are calling us because they do not want a headache. They want people who are going to service their business. That is something that my team has been really focused on. I think it has paid off.

Speaker #4: We're still in, you know, serious growth mode. Obviously, with the, you know, with the Iowa facility, that's going to, that's going to really, you know, take the company to the next level.

Speaker #4: Excited about that, but I think, you know, most importantly here, you know, I think we've we've earned we've earned our stripes to be where we are and, you know, people are you know, people are calling us because they just don't you know, they want they don't want they don't want a headache.

Speaker #4: They want people who are going to service their business, and that's something that, you know, my team has been really focused on. And so I think it's paid off.

Speaker #3: Yeah, I mean, it sounds like there's definitely a continued opportunity there. And then, kind of switching gears, you know, this Tetra Pak opportunity really is one of the key opportunities, it seems like, for your company going forward.

Nicholas Sherwood: Yeah. Sounds like there is definitely a continuing opportunity there. Then kind of switching gears, this Tetra Pak opportunity, it really is one of the key opportunities it seems like for your company going forward. Can you just give some insight on, is that timeline still intact on building out the facility? Any specific insights into the completion of the prototype production at Tetra Pak's new product development center? Just tell us what do you still need to bring in or to do to make sure that everything remains on schedule for this?

Nick Sherwood: Yeah. Sounds like there is definitely a continuing opportunity there. Then kind of switching gears, this Tetra Pak opportunity, it really is one of the key opportunities it seems like for your company going forward. Can you just give some insight on, is that timeline still intact on building out the facility? Any specific insights into the completion of the prototype production at Tetra Pak's new product development center? Just tell us what do you still need to bring in or to do to make sure that everything remains on schedule for this?

Speaker #3: Can you kind of just give us some insight on is that timeline still intact on, you know, building out the facility? Any specific insights into the completion of the prototype production at Tetra Pack's new product development center and just kind of, you know, tell us what do you still need to bring in or to do to make sure that, you know, everything remains on schedule for this?

Speaker #4: Well, you know, first of all, we're still on track, and we're looking at, you know, the tail end of 2027 to see the first bottle come off the line.

Jim Kras: Well, first of all, we are still on track, and we are looking at the tail end of 2027 to see the first bottle come off the line. We have, once again, having the reputation that we have for our service levels, our execution, we have got pre-sold commitments for 100% of the facility, which is just unheard of, which tells you an idea of what the demand is there. We have a nice blend of our brand as well as private label. We knew there was a shortfall in the industry. Protein is hot. It continues to stay hot. It continues to grow. We continue to innovate as well. Obviously, kind of building that bridge from Farm-to-Formula is a big thrust for us to harness and really add another dimension to what we do in the greenhouse.

Speaker #4: We have once again, you know, having the reputation that we have for our service levels, our execution, you know, we've got pre-sold commitments for 100% of the facility, which is just, you know, unheard of, which tells you an idea of what the demand is there.

Speaker #4: It's got we have a nice blend of of our brand as well as as as as well as private label. You know, we we knew there was a shortfall in the industry protein's hot.

Speaker #4: It continues to stay hot. It continues to grow. We continue to innovate as well. Obviously, kind of building that bridge from farm to formula is a big thrust for us.

Speaker #4: The harness can really add, you know, another dimension to what we do in the greenhouse. So we're really excited about that, and there are a lot of things on the horizon here that I think are going to be just tremendous.

Jim Kras: We are really excited about that, and there is a lot of things on the horizon here that I think are going to be just tremendous. We are on track. We are going to be starting with a co-manufacturer this year at the end of Q4 to allow us to kind of continue to prove out the formulas, to allow us to go to market quickly and see the revenue from that, and not have to wait over a year to really capture some of this pent-up demand for these type of products. Tetra Pak has been just an unbelievable partner. They are just such a great company, and I consider us fortunate to continue to work with them. The development process at their state-of-the-art facility in Denton, Texas, was just phenomenal.

Speaker #4: But, you know, we are we're on track. We are going to be starting with a with a co-manufacturer you know this you know you know this this year at the end of you know Q4 to allow us to kind of continue to prove out the the formulas to allow us to you know go to market quickly and see the revenue from that and and not have to you know wait you know a over a year to really you know capture some of the the the just pent-up demand for these type of products.

Speaker #4: So it's you know you know Tetra Pack has been just an unbelievable partner. They're just just such a great company and you know you know I consider us fortunate to to continue to work with them.

Speaker #4: The development process at their state-of-the-art facility in Denton, Texas, was was just phenomenal and you know we have some real significant players on our team that have you know who have been you know working with Tetra Pack for decades that you know came on to Edible Garden like Dr. Chuck Siser is one of them.

Jim Kras: We have some real significant players on our team who have been working with Tetra Pak for decades that came on to Edible Garden. Dr. Chuck Sizer is one of them. He helped develop the majority of the patents for Tetra Pak on some of their packaging. He is on our team and advises us, and was there on the run to develop the product. Great tasting, clean label product that right now is just really exciting to be able to work with. It is really pretty tremendous. To be able to leverage off a growing core business, I think, just really continues to uniquely position us for the type of growth.

Speaker #4: He helped develop the majority of the patents for Tetra Pak on some of their packaging. He's on our team and advises us, and was there on the run to develop the product.

Speaker #4: But, you know, great tasting, clean labeled, you know, you know, product that, you know, right now is just just really exciting to be able to work with.

Speaker #4: So you know it's it's really pretty tremendous and and to be able to leverage off a growing core business I think just really continues to uniquely uniquely position us for the type of growth I think this is going to be a much different company you know you know as we head into Q4 next year and and especially in 2028 as we're as we're pumping out you know product out of Iowa and and you know we're really focused on on driving that business.

Jim Kras: I think this is going to be a much different company as we head into Q4 next year, and especially in 2028 as we are pumping out product out of Iowa and we are really focused on driving that business. Yeah, it is really exciting. It is going really well. Honestly, we just have a great team, and people are excited about what we are doing, between our zero waste inspired mission and trying to cut out waste and have an eye on recyclable packaging. Tetra Pak obviously plays into that, to this Farm-to-Formula notion that I think is quite novel, that I think will continue to shake up the industry and get us positioned properly with not only our own brands like Kick., which we will be launching in Q4, but also a lot of the development work that we are doing with major retailers on this product. Once again, really exciting.

Speaker #4: So yeah it's it's it's really exciting. It's going really well but you know honestly we just have a great team and and and people are excited about what we're doing you know between our zero waste inspired mission and mission and trying to you know cut out waste and and and have an eye on you know recyclable you know packaging you know Tetra Pack obviously plays into that to you know to this farm to formula notion that I think is quite novel that that that I think will will continue to you know shake up the industry and and get us you know you know positioned properly with you know not only our own brands like Kick which will be launching in Q4 but also you know also a lot of the development work that we're doing with major major retailers on this product.

Speaker #4: So once again really exciting and I think you know what we've done and how the team has executed and where we focused our time and energy and just sticking to our knitting and and and getting to where we are you know it's been it's been challenging but I mean that's you know that's part of business and you know I think everybody that I work with you know wants to compete in in in and hopefully you know you know win you know continue the wins that we have going on whether it's in the herbs whether it's in you know pickles you know with you know the Safeway win this past year and Woodman's you know whether it's continue growing pulp with Wakefern this year and and some other retailers or or just the RTDs which I think is just going to be just incredibly you know awesome to be quite frank.

Jim Kras: I think what we have done and how the team has executed and where we focused our time and energy and just sticking to our knitting and getting to where we are, it has been challenging, but that is part of business. I think everybody that I work with wants to compete and hopefully continue the wins that we have going on, whether it is in the herbs, whether it is in pickles, with the Safeway win this past year and Woodman's, or whether it is continued growing Pulp with Wakefern this year and some other retailers or just the RTDs, which I think is just going to be just incredibly awesome, to be quite frank.

Speaker #3: Okay, great. Yeah, I'm looking forward to following along, and I'll return to the queue. Thank you for answering all my questions.

Nicholas Sherwood: Okay, great. Yeah. Looking forward to following along. I will return to the queue. Thank you for answering all my questions.

Nick Sherwood: Okay, great. Yeah. Looking forward to following along. I will return to the queue. Thank you for answering all my questions.

Speaker #4: You're welcome.

Jim Kras: You are welcome.

Speaker #1: Thank you very much. Just a reminder, if there are any questions, you can join the queue now by pressing star one on your phone keypad.

Operator: Thank you very much. Just a reminder, if there are any questions, you can join the queue now by pressing star one on your phone keypad. Our next question is coming from Nicole Coffman of Blackridge Capital. Nicole, your line is live.

Speaker #1: Our next question is coming from Nicole Kaufman of Black Ridge Capital. Nicole, your line is live.

Speaker #2: Hi, good morning, guys. Congratulations on the quarter results. Jim, you've talked about the significant opportunity you see at Prairie Hills and the ability to support both Edible Garden brands and private label and co-manufacturing customers.

Nicole Coffman: Hi. Good morning, guys. Congratulations on the Q2 results. Jim, you have talked about the significant opportunity you see at Prairie Hills and the ability to support both Edible Garden brands and private label and co-manufacturing customers. Can you talk about the level of interest you are seeing from potential customers and how those discussions are progressing?

Speaker #2: Can you talk about the level of interest you're seeing from potential customers, and how those discussions are progressing?

Speaker #4: Well, the interest has just been phenomenal. I mean, that's really, you know, why we did this—because retailers were coming to us and saying, "Hey, you know, you guys are an innovative group."

Jim Kras: Well, the interest has been just phenomenal. Why we did this was because retailers were coming to us and saying, "Hey, you guys are an innovative group. You're in a really challenging category. You've done a great job servicing our business. We want more of what you're doing. Have you thought about doing this and taking what it is that you grow and potentially put it into a beverage, helping us with our current milk and whey-based products. Can you do something there." I've got years of experience working at companies like The Nature's Bounty Co. and Ajinomoto, so that at least gave me some credibility that I could figure this out with the team. But really what's happened is, I think it's been, once again, a real collective effort, leveraging from a very advantageous position where people are coming to us. It doesn't happen that way in this industry.

Speaker #4: You're in a really challenging category. You've done a great job servicing our business. You know, we want— you know, we want more of what you're doing.

Speaker #4: Have you thought about doing this and taking what it is that you grow and potentially put it in into you know a beverage, helping us with our you know our current you know our current you know milk and and whey-based products?

Speaker #4: Can you do something there? You know, I've got you know years of experience working at you know companies like Nature's Mining and Genomoto. So that at least gave me some credibility that I could figure this out with the team and you know but really what's happened is you know I think it's been once again a real collective effort you know leveraging from you know a very advantageous you know position where people are you know coming to us.

Speaker #4: It doesn't happen that way in this industry. You know, it's I said to somebody it's it's been a long time where since you know you know you know I'm managing you know where am I going to put my time and how do I prior prioritize who we we work with based on opportunity and collective vision versus you know just trying to sell more you know sell sell more widgets.

Jim Kras: I said to somebody, it's been a long time since I'm managing where am I going to put my time and how do I prioritize who we work with based on opportunity and collective vision versus just trying to sell more widgets. Once again, major retailers, everyone from the major retailers that we currently deal with to even new people who are coming that we haven't necessarily worked with before on the fresh side saying, "Hey, can you do this for us." Private label continues to grow. There's a place for both. It's underserved, the private label part of it, for a multitude of reasons. There's just not enough capacity out in the marketplace. There's a pent-up demand, especially on private label. If you go into most of the grocery stores, you won't see a private label RTD.

Speaker #4: So once again, I mean major retailers, you know, everyone from the major retailers that we currently deal with to even new people who are coming in that we haven't necessarily worked with before on the fresh side, are saying, "Hey, you know, can you do this for us?" You know, look, private label continues to grow.

Speaker #4: There's a place for both. And, you know, it's very underserved, the private label part of it, for a multitude of reasons.

Speaker #4: There's just not enough capacity. Out in the marketplace there's you know you know there's not there's just there just isn't there just there's there's just there's a pent-up demand especially on private label you know if you go into most of the grocery stores you won't see a private label RT RTD.

Speaker #4: There are reasons for that, and a lot of it's just, you know, capacity. And so we're going to solve that problem. We're going to solve it with some of the major retailers.

Jim Kras: There's reasons for that, and a lot of it's just capacity. We're going to solve that problem. We're going to solve it with some of the major retailers. Like I said, we've got commitments on pretty much on the whole factory. Right now we're just focused on executing and getting it up and running. Then, as there'll be other opportunities, we'll continue to do that. We're also seeing the ability to start to get some pricing power here on the herbs, which hopefully will lead to the RTDs. Once again, it's like consolidation on the herbs, and not many companies who do what we do and do it as well as we do. So that, obviously, retailers will pay a little bit more now.

Speaker #4: Like I said, you know, we've got you know we've got you know you know commitments on you know on pretty much on the whole factory and you know and so right now we're just focused on executing and getting it up and running and then you know as they'll be other opportunities we'll continue to do that and you know and we're also seeing we're seeing you know you know the ability to to start to get you know some pricing power here on the on the herbs you know which hopefully will lead to the RTDs as you know there's once again it's like consolidation on the herbs and you know not many companies who do what we do and do it as well as we do.

Speaker #4: So that you know obviously you know retailers you know will pay a little bit more now. And then you know because they want they they don't they don't you know they want some of the problems to go away.

Jim Kras: Because they want some of the problems to go away, and they want products, and if they don't have product on the shelves, they lose that sale. So, we help take some of that risk away from them. On the RTDs, once again, I think we'll continue to capture that void of volume, and I think that'll help us across the board, whether it's just driving top line or being able to price us accordingly so that everybody sort of wins.

Speaker #4: And they want product and and if they don't have product on the on the shelves they lose that sale. So you know we help take some of that risk away from them and then and then on the RTDs it's you know it's once again I think you know we'll continue to to capture you know that that that void of volume and I think that'll help us you know across the board whether it's you know just driving top line or or being able to you know price this you know you know accordingly so that you know everybody sort of wins.

Speaker #2: Well, that's great. I guess this kind of leads into my next question: you know, you guys delivered double-digit revenue growth this quarter.

Nicole Coffman: Well, that's great. I guess this kind of leads into my next question is that, you guys delivered double-digit revenue growth this quarter, and your SG&A significantly declined year over year. So what are you seeing as the biggest opportunities that would translate into the continued revenue growth and improved profitability and operating leverage?

Speaker #2: And your SG&A significantly declined year over year. So, what are you seeing as the biggest opportunities that would translate into continued revenue growth and improved profitability and operating leverage?

Speaker #4: Well, you know, look, I think it's, you know, the—it's kind of the conventional wisdom that, you know, many of our costs will stay relatively static as we put more volume into the existing greenhouses.

Jim Kras: Well, look, I think it's kind of the conventional wisdom that many of our costs will stay relatively static as we put more volume into the existing greenhouses. We're not building any more greenhouses currently. We've got two greenhouses. We can continue to not only drive our signature potted product, and expand that, but also continue to drive more fresh-cut herbs, which are not necessarily contingent on how much growing space we have. I continue to see that revenue line continuing to go forward in that core business, as well. Look, we'll make some investments obviously in Iowa, but we have a lot of people already that can do a lot of things and work across the whole platform. So you are going to see some good gains on revenue.

Speaker #4: We're not building any more greenhouses currently. We've got two greenhouses. We can continue to not only drive, you know, our signature potted product and, you know, expand that, but also, you know, continue to drive more fresh cut herbs, which are not necessarily contingent on how much growing space we have.

Speaker #4: And so you know I I continue to see you know that revenue line continuing to to to go forward in that core business you know as well you know and and look, we'll make some investments in you know in in obviously in Iowa but we have a lot of people already that can do a lot of things.

Speaker #4: And work across the whole platform. And so you know we'll we're going to see you know some some some good gains on revenue. We'll see some you know incremental staffing that will be strategic that will be probably more focused on tetrapack the tetrapack facility more than anything else.

Jim Kras: We'll also see some incremental staffing that will be strategic, that will be probably more focused on the Tetra Pak facility more than anything else. Some of that information will be forthcoming. But for me, I think it's like, let's continue to grow the top line. We're streamlining costs really on the greenhouse business, and there's still some more work to do. Costas and his team have done a very nice job. I think of that, especially this last quarter of focusing on the SG&A. We're working to procure better on some of the suppliers that we use. As we continue to be consistent with our orders, it allows us to negotiate better terms with our suppliers, and a lot of that, I probably don't speak enough about that.

Speaker #4: And you know we'll you know some of that information will be forthcoming. But you know for me I think it's like you know let's continue to grow the top line streamlining costs really on the greenhouse business and there's still some more work to do cost us and his team is have done a very nice job I think of that especially this last quarter of you know focusing on the SG&A you know where where where we're working to procure better on some of the some of the things that you know some of the suppliers that we use you know as we continue to be consistent with our orders it allows us to you know negotiate better terms and with our with our suppliers you know and and and and a lot of that's you know I probably don't speak enough about that.

Speaker #4: I think we've been you know I know that we've been doing this you know for over a decade and we've got some really good suppliers that you know partner with us to you know and they're you know they're happy our business is growing.

Jim Kras: I know that we've been doing this for over a decade, and we've got some really good suppliers that partner with us. They're happy our business is growing, and they're happy they're obviously making money with us. So as we scale, they're scaling, and our costs go down as we get scale. I mean, that's always the idea around economies of scale, and we're starting to see that pick some of that up and help limit our costs and be more efficient in what we're doing. So, revenue will continue to climb here with costs being minimized and relatively static. Some key strategic investments in people, which I think is our most important asset.

Speaker #4: They're happy they're obviously you know making money with us and and so you know as we scale they're they're scaling and our costs go down as we get scale I mean that's always right the idea around economies of scale and we're starting to see that pick some of that up and and and help you know limit limit you know our our costs and and be more efficient in what we're doing.

Speaker #4: So revenue will continue to you know climb here. With with with costs being you know minimized and relatively static you know some some key strategic you know investments in in people which which you know I think is our most important asset and then and then from there you know we'll we'll continue to to do what we need to do to capture the opportunities and make the investments you know in the relationships or or or branding or or anything else that you know we feel is warranted to to make sure that we continue you know in the in the current trajectory.

Jim Kras: Then from there, we will continue to do what we need to do to capture the opportunities and make the investments in the relationships or branding or anything else that we feel is warranted to make sure that we continue in the current trajectory.

Speaker #2: Well, thank you, Jim. I appreciate that insight. I'll jump back in the queue if I have additional questions.

Nicole Coffman: Well, thank you, Jim. I appreciate that insight. I will jump back in the queue if I have additional questions.

Speaker #4: Thank you very much. Appreciate it.

Jim Kras: Thank you very much. Appreciate it.

Speaker #1: Thank you very much. Well, we have no further questions in the queue at this time. I will now hand back over to Jim for closing comments.

Operator: Thank you very much. Well, we have no further questions in the queue at this time. I will now hand back over to Jim for closing comments.

Speaker #4: Thank you. Before we conclude, I want to leave you with a few thoughts we came into 2026 focused on strengthening our core business while continuing to build a foundation for edible gardens next phase of growth.

Jim Kras: Thank you. Before we conclude, I want to leave you with a few thoughts. We came into 2026 focused on strengthening our core business while continuing to build a foundation for Edible Garden's next phase of growth. Through the first half of the year, we believe we made meaningful progress on both fronts. Our core business continues to grow, supported by expanding relationships with leading retailers, broader growth across our product portfolio, and with continued efforts to improve operating efficiency. We believe that business provides an increasingly strong commercial foundation for where we want to take Edible Garden next. At the same time, we are making tangible progress with Farm-to-Formula and Prairie Hills.

Speaker #4: So, the first half of the year, we believe we made meaningful progress on both fronts. Our core business continues to grow, supported by expanding relationships with leading retailers and broader growth across our product portfolio, and we continue efforts to improve operating efficiency.

Speaker #4: We believe that the business provides an increasingly strong commercial foundation for where we want to take Edible Garden next. At the same time, we are making tangible progress with Farm to Formula and Prairie Hills.

Speaker #4: The work completed with Tetra Pak, along with the continued development of the Prairie Hills facility, brings us closer to our goal of building a scalable, domestic RTD manufacturing platform capable of supporting both our own brands and private label opportunities.

Jim Kras: The work completed with Tetra Pak, along with the continued development of Prairie Hills facility, brings us closer to our goal of building a scalable domestic RTD manufacturing platform capable of supporting both our own brands and private label opportunities. We believe Prairie Hills has the potential to significantly expand the scale and reach of Edible Garden while we combine that opportunity with retail relationships, distribution network, and operating capabilities we have already built. We believe we have the foundation to evolve Edible Garden into a much broader clean label food and nutrition company. There is a lot of work ahead, and our focus remains on execution. But we are encouraged by the progress we are making and excited about the opportunity in front of us. Thank you to our employees, customers, retail partners, and shareholders for your continued support. We look forward to updating you on our progress.

Speaker #4: We believe Prairie Hills has the potential to significantly expand the scale and reach of Edible Garden while we combine that opportunity with the retail relationships, distribution network, and operating capabilities we have already built.

Speaker #4: We believe we believe we have the foundation to evolve edible garden into a much broader clean label food and nutrition company. There's a lot of work ahead and our focus remains on execution but we are encouraged by the progress we are making and excited about the opportunity in front of us.

Speaker #4: Thank you to our employees, customers, retail partners, and shareholders for your continued support. We look forward to updating you on our progress. Thank you for joining us today.

Jim Kras: Thank you for joining us today.

Speaker #1: Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. We thank you for your participation.

Operator: Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.